Negotiating is a really wonderful way to secure the best deals. Whether you are buying, selling, or leasing property, the art of negotiation tactics can make all the difference. Here are 10 clever negotiating tactics from a real estate attorney.
1. Identify One-Sided Terms
Sometimes contracts contain one-sided terms that could put you at a disadvantage. From contracts containing one-sided clauses to hidden fees, a strong understanding of terms can help you obtain a more balanced agreement that is in your best interest.
2. Leverage Market Research
Even before the negotiations start, it’s important to conduct your own market research. This means that you should have an idea of the current market: real estate trends, property values, and comparable sales. You can then leverage this information to put together proposals and counteroffers.
3. Establish Clear Goals
Another important negotiation tactic to keep in your pocket is to set clear objectives. It’s crucial that you establish a strategy that aligns with your goals and priorities. An experienced real estate attorney can help you establish such a strategy.
4. Negotiate Beyond Price
When we think of negotiations, one of the first things that comes to mind is price. But while price is, of course, a huge factor in any real estate deal, there are other very relevant elements. Financing terms, repairs, contingencies, and closing dates can all impact your agreement based on your needs.
5. Use Silence Effectively
One of the most powerful, and yet underutilized, tools in negotiations is silence. Silence can be very uncomfortable for people and as a result, we fill it by chatting. After you make an offer or counteroffer, it can be very helpful to remain silent and allow the other party the opportunity to respond and this will often result in decisions in your favor.
6. Highlight Your Attorney’s Expertise
Working with an experienced real estate attorney can prove extremely impactful, not only for the expertise that they can bring to you but also for the intimidation factor that they provide. When you mention that you’re working with an experienced real estate attorney to handle negotiations, it shows the other party that you are well prepared. This can impact how they approach the situation.
7. Offer Creative Solutions
Although one usually wants to compromise, this can lead to an impasse. Roadblocks often require creative solutions that can help to assuage the concerns of both parties. Skilled real estate lawyers can help brainstorm solutions, which lead to other compromises not previously considered.
8. Build Rapport
Building a positive rapport with the other party can influence them to better cooperate with you during negotiations. When the other party likes you, it can improve discussions, increase understanding, and result in reaching an agreement that is beneficial to both parties.
9. Understand the Motivations
Anytime one person understands the motivations of another person, it has the potential to help the situation. It’s important to understand where the other party is coming from so that you can tailor your negotiation strategy according to their underlying interests.
10. Be Prepared to Walk Away
One of the most difficult negotiation tactics to practice is still one of the most important: be prepared to walk away. If the terms of the agreement don’t meet your needs, you should be ready to leave the deal behind. Additionally, demonstrating that you are willing to walk away may influence the other party to meet you halfway since they don’t want to lose the deal altogether.
Mastering real estate negotiations requires a careful balance between legal expertise and strategy. By equipping yourself with these techniques you can increase your chances of getting what you want.
PALUMBO LAW Helps Those in Rhode Island with their Real Estate Needs
At PALUMBO LAW, our knowledgeable Rhode Island real estate attorneys understand Rhode Island real estate laws and will work strategically to help our clients meet their real estate goals. If you are looking to buy, sell, or lease a property, we can help. To learn more or to schedule a free consultation, call us today!
